Repository: UIHistories Project: Board of Trustees Minutes - 1980 [PAGE 198]

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188

BOARD OF TRUSTEES

[February 21

limits, of which there are many, are reviewed by the Workmen's Compensation Subcommittee which makes recommendations to the vice president for administration as to claim payments not exceeding $5,000. Claim payments which exceed $5,000 are referred by the subcommittee, with a recommendation, to the Risk Management Policy Committee. This committee reviews claims referred by the subcommittee and makes recommendations to the vice president for administration. T h e vice president for administration acts on claims which do not exceed $15,000; currently, any claim payments or settlement offers which exceed $15,000 are submitted to the Board of Trustees for approval. T h e Act requires payment for loss of income to be on a timely basis and in the amount as specified in the Act. Medical expense can be identified as related to the treatment of injury, and the reasonableness of the charges can be determined. The University has little discretion in the payment of loss of income and medical expenses in the great majority of its workmen's compensation claims. It is proposed that the risk management staff review, evaluate, and make recommendations to the vice president for administration on payments for all loss of income and medical expenses and periodically report all such payments to the Workmen's Compensation Subcommittee. Under this procedure, the Risk Management Policy Committee will not review individual workmen's compensation claims which do not involve policy consideration. T h e Workmen's Compensation Subcommittee will review claims for permanent disabilities which exceed $1,500 and make recommendations to the vice president for administration for the disposition of those claims. The vice president for administration will inform the board of any workmen's compensation claim in which payment for loss of income and medical expenses exceeds $30,000 and submit to the board for its approval of any payment for permanent disability in excess of $30,000. The vice president for administration has reviewed the proposed revisions in the risk management program and has recommended that the Board of Trustees ta&e the following actions: 1. Authorize a change in the title of the Public and Contract Liability Reserve Fund to the General and Contract Liability Reserve Fund. 2. Authorize the transfer of moneys between the Hospital Medical Professional Liability Fund and the General and Contract Liability Fund as may be necessary for the payment of claims which are payable from either of those two funds. No transfer shall be made from the University of Illinois Hospital Trust Fund to either the Hospital Medical Professional Liability Fund or the General and Contract Liability Fund. 3. Approve the University of Illinois Self-Insurance Plan for General and Professional Liability, dated February 21, 1979, as a documentation of the program in the general and professional liability areas. 4. Authorize the vice president for administration to negotiate, process, and pay, without further action by the Board of Trustees: a. Workmen's compensation claims for loss of income and medical expenses, and up to $30,000 for permanent disabilities. b. General, contract, or professional liability claims up to $30,000. I recommend approval. I n t h e course of discussion, M r . L e n z m o v e d t h a t t h e level of a u t h o r ity b e a m e n d e d f r o m $ 5 0 , 0 0 0 as r e c o m m e n d e d t o a m a x i m u m of $ 3 0 , 0 0 0 in e a c h case. T h e s t u d e n t a d v i s o r y vote w a s : Aye, M i s s K o o p e r , M r . S o b o t k a , M r . Watson; no, none. T h e r e c o m m e n d a t i o n w a s a p p r o v e d as a m e n d e d b y t h e following vote: Aye, Dr. Donoghue, M r . Forsyth, M r . H a h n , M r . H o w a r d , M r .